China has strong protectionist laws that prohibit foreign automakers to own over 50% of local manufacturing facilities. The government has often discussed removing the constraint when it comes to manufacturing electric vehicles, but it doesn’t ever materialize.

As US President Donald Trump is currently updating the US’ own protectionist trade policies, Musk questioned the president over the issue of car trade with China:

Do you think the US & China should have equal & fair rules for cars? Meaning, same import duties, ownership constraints & other factors.

It’s not clear exactly which companies he is talking about, but Faraday Future, SF Motors, and Nio come to mind. He could also be including Lucid Motors in the mix, but their investor base is reportedly a little more diverse than those first 3 examples.

BYD has also been making electric trucks and busses in the US and while they haven’t been making cars, they have been looking to import them in the past.

In another tweet, the CEO added that he is against import duties “in general”, but he doesn’t think the situation is fair:

I am against import duties in general, but the current rules make things very difficult. It’s like competing in an Olympic race wearing lead shoes.